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City's Budget
The City's budget for FY2004 – July 1, 2003, through June 30, 2004 – was $1.39 billion.  This amount reflects both Operating and Capital budgets.

 

The Operating Budget consists of the General Fund, which includes revenue from property taxes and 20 other funds with clearly designated purposes, such as aviation, public transit, water, sewer and storm water.  Revenue for these other funds comes from user fees, sales tax, federal agencies and other sources not related to property tax.

 

The City's five-year Capital Investment Plan (CIP) Budget funds the construction of roads, sidewalks, fire stations, police facilities and other public buildings.  Revenue for this budget comes from property tax, water/sewer fees, aviation fees, storm water fees and sales tax.

 

For FY2004, which this report highlights, the property tax rate was 42¢ per $100 assessed valuation, or $630 annually ($52.50 per month) on a $150,000 home.  The property tax accounted for 18.4% of the City's overall annual income.

 

For the next fiscal year - July 1, 2004, through June 30, 2005 - the City's total budget is $1.56 billion.  City Council maintained the property tax rate at 42.0¢ per $100 assessed valuation.

Pursue fiscal policy that will maintain the City's AAA credit rating.

Achievements
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The City's AAA rating for general obligation debt was maintained for the 31st consecutive year from Moody's and the 28th consecutive year from Standard and Poor's.  Fitch has rated the City's general obligation debt since 2002; its ratings also have been AAA. The AAA bond rating means lower interest rates when the City purchases bonds and that translates into savings for taxpayers

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Annual City portfolio yield of more than twice the benchmark.  City tax revenue that is received but not yet spent is managed in an investment portfolio with the goal of maximizing interest income.  In FY2004, that portfolio earned more than twice the rate of return of the benchmark "10 Bond Index," adding $10 million to city funds

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$3.2 million was saved by refinancing $58.7 million in outstanding government debt

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A very low 2.066% finance rate for capital equipment was secured on schedule.  The financing will fund approximately $14.5 million for water and sewer initiatives and $11.3 million for general government

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Volunteers – 1,470 hours worth – with the Community Relations Committee represented 73.5% of a full-time staff position, leveraging $24,307 in in-kind dollars to expand services at no additional cost to taxpayers

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Future interest expense reduction of an estimated $18 million in the City's Capital Investment Plan.  Estimated savings are attributed to the development, approval and implementation of a variable-rate financing plan for funding projects

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Insurance renewal costs were held down by actively managing various issues related to risk.  The insurance renewal costs were originally projected to be $5.5 million; the final cost came in at $4.3 million, saving the City more than $1 million

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Maintained a stable property tax rate of 42.0¢ per $100 of assessed valuation

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Leveraging of $63,219,347 in private investments for the HouseCharlotte program and other housing loans, using only $11,849,341 of public money, a ratio of 1 to 5

 

Sources of Revenue & How We Use the Money